The invention relates to a tracking system and a method for improving satellite pseudo range precision. The system comprises a frequency mixer, a carrier NCO, a code NCO, a C code generator, a first shift register, a switching circuit, a P code generator, a second shift register, an I branch correlator, a Q branch correlator, an integral sum reset module and a processor, wherein the integral sum reset module is respectively connected with the processor, the I branch correlator and the Q branch correlator; and through the switching circuit, switching between the C code and the P code is realized. According to the tracking system and the method for improving satellite pseudo range precision by adopting the structure, C code and P code signal tracking can be carried out at the same time, and after the C code is captured and tracked, the P code is controlled to start according to time information, and P code tracking is switched. Not only the C code capturing speed but also the high P code pseudo range precision are provided, the circuit has a simple structure, the resources are few used, and the cost and the power consumption are reduced.